Feb 27, 2024 - Economy
It's been more than 30 years since food ate up this much of Americans' income
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Americans are spending more than 11% of their disposable income on food, per federal data — the highest level in more than three decades, matching 1991, the Wall Street Journal reports. Groceries and restaurants are both getting more expensive.
Why it matters: This measure could help explain why Americans feel badly about the economy, despite promising signs for the nation as a whole.
Zoom in: Prices ticked up again in January, even with overall inflation cooling.
- Food producers are facing higher costs for some products, which they're passing along to consumers, and the tight labor market is also keeping labor costs high.
Good news: The closely watched price of Grade A eggs is down sharply from last year's stratosphere — $2.51 in December vs. $4.82 in January 2023.
Go deeper: A $126 grocery tab that explains the vibes paradox
